Hong Nam-ki: "New Deal Fund Is Not About Covering Losses with 국민 Taxes"

Deputy Prime Minister for Economy Hong Nam-ki is attending the government-related economic questions session held at the National Assembly on the 16th, responding to lawmakers' inquiries. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kang Nahum] Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, said on the 16th regarding the New Deal Fund, "A policy-type fund means that government funds are involved, reducing risk, but it does not guarantee the principal loss."

On the same day, during the National Assembly's economic sector questioning, in response to a question from Cho Jung-sik, a member of the Democratic Party of Korea, asking, "Is it true that the government creates a controlled fund and intends to cover losses with taxpayers' money?" Hong said, "Saying that losses are covered by taxpayers' money is a wrong expression."

He added, "Among the New Deal Funds, the policy-type fund is where the government invests first in the subordinated area within a 10% range," and "This means that the government's investment share covers the risk first."

Regarding whether the government is forcing financial companies to participate in the New Deal Fund, Hong dismissed the notion, saying, "If there is profitability like in the New Deal project, financial companies find it sufficiently valuable to invest," and "I am aware that private institutions have voluntarily announced their participation, and I expect many institutions to participate in the future based on profitability."

This content was produced with the assistance of AI translation services.